The Bankruptcy Law Firm, Prof. Corp.
Okorie v. Citizens Bank (In re Okorie)
A US Fifth Circuit Court of appeals case, Okorie v. Citizens Bank (In re Okorie), 24-60255 (5th Cir. Oct. 11, 2024) discusses 3 limited circumstances in which a chapter 7 debtor has standing to object to a creditor’s proof of claim, or to oppose the chapter 7 bankruptcy trustee selling the chapter 7 debtor’s house or other property. A bankruptcy court decision, In re Atiyat, 21-32555 (E.D. Va. Oct. 11, 2024) says there is a fourth circumstance in which a chapter 7 debtor has standing to do these things: On 10/11/24, both the US Fifth Circuit Court of Appeals, and…
France Is Experiencing an Unprecedented Budgetary Crisis
Credit and Collection 10/14/24 e-newsletter reports that the Country of France has such serious financial problems that France may have to file bankruptcy, which would push the whole European Union of countries into financial turmoil: France is experiencing an unprecedented budgetary crisis. The deficit is at risk of exceeding 6% in 2024. France now risks bankruptcy, which would drag the entire eurozone into the abyss. The French government is facing a troubling financial situation. The deficit could exceed 6% in 2024, forcing the executive to plan a budgetary effort of 60 billion euros for 2025. Despite this drastic measure, public…
Samson v. LCF Group Inc. (In re Bridger Steel Inc.), ___BR___ (Bankr. D. Mont. Sept. 30, 2024)
Samson v. LCF Group Inc. (In re Bridger Steel Inc.), ___BR___ (Bankr. D. Mont. Sept. 30, 2024): Can a Bankruptcy Trustee be forced to arbitrate trustee’s allegation that a creditor’s claim was usurious under applicable state law: this decision says no, Trustee cannot be forced to arbitrate. Bankruptcy Judge Hursh Decision refuses to order trustee to arbitrate trustee’s allegations that creditor’s claim was usurious under applicable state usury law. When a trustee objects to the allowance of a claim because it was allegedly usurious under state law, the trustee cannot be compelled to arbitrate the question of usury, according to…
Tico Construction Co. v. Van Meter (In re Powell), ___F.4th___ (9th Cir. Ct. Appeals 10/1/24)
Tico Construction Co. v. Van Meter (In re Powell), ___F.4th___ (9th Cir. Ct. Appeals 10/1/24): Ninth Circuit Court of Appeals, in a 2 to 1 decision, holds that even when a person/entity which is NOT eligible to file Chapter 13 bankruptcy, files a Chapter 13 bankruptcy in bad faith, that the person none-the-less has an absolute right to later dismiss the Chapter 13 case, pursuant to Bankruptcy Code section 11 USC 1307(b), which governs debtor’s right to dismiss a Chapter 13 case. This decision is correct based on the wording of 11 USC 1307(b), but will just encourage people who…
Analysis: More Young Adults Filing for Bankruptcy
Bankruptcy filings among 18- to 29-year-olds have surged nearly 17% from Q1 to Q2 of 2024 and are up 13% compared to last year, according to Forbes. While the pandemic sparked a drop in filings due to relief measures, debt among young adults has since risen, reaching $1.12 trillion for 18- to 29-year-olds. Filings have jumped 50% since a 24-year low in early 2022. There’s been a rise in both potential and actual bankruptcy filings since late 2022, and the trend has continued into 2023, says Justin Gillman, bankruptcy attorney at Gillman, Bruton & Capone, LLC in New Jersey. “This…
Credit Card Debt in the U.S. Hits an All-Time High
The Credit & Collection e-Newsletter of 9/9/24 reports that Credit Card Debt in the U.S. hits an all-time high of $930 Billion. Banks and other credit card issuers will fail, if a substantial part of that $930 billion in credit card debt defaults on paying that credit card debt.
Senior Living and Care Leads Record-Breaking Distress in Health Care Sector Bankruptcy Filings
American Bankruptcy Institute (“ABI”) reports, in ABI’s 8/15/24 e-newsletter, that distress levels in health care, as measured by the number of bankruptcy filings, had another record-breaking quarter, led by the senior living and care sector, according to the latest Polsinelli-TrBK Distress Indices Report, McKnight’s Senior Living reported. The Health Care Index reached the highest level of distress in the report’s history for the fifth consecutive quarter, according to the Second Quarter 2024 Chapter 11, Healthcare and Real Estate Distress Indices report. Data show that the current level of chapter 11 filings is almost 50% higher than health care distress at…
US Farmers are in Precarious Financial Position, and So are the Community Banks which Loan Farmers Money, to Enable Farmers to Plan/Grow/Harvest their next season of crops
US farmers are in a precarious financial position, and so are the community banks which loan farmers money, to enable farmers to plant/grow/harvest their next season of crops. The US Congress urgently needs to pass an extension of the current federal farm bill. The current farm bill expires on 9/30/24. But as of 8/15 24 legislation is bogged down in Congress to extend the current version of the federal farm bill expires, or pass a new improved farm bill. Though Congress could extend the current version of the bill for another year before it expires on Sept. 30, Congress should…
SEC v. Jarkesy, 144 S. Ct. 2117, 219 L. Ed. 2d 650 (June 27, 2024)
SEC v. Jarkesy, 144 S. Ct. 2117, 219 L. Ed. 2d 650 (June 27, 2024): This 6/27/24 US Supreme Court case is NOT a bankruptcy case, but it clarifies several previous US Supreme Court decisions that are bankruptcy decisions, including previous US Supreme Court Granfinanciera case on when is there a right to jury trial, and including previous US Supreme Court cases on bankruptcy court’s jurisdiction/lack of jurisdiction, ie Northern Pipeline, and Stern v Marshall. Jaresky is important because Jarekesy makes clear there is NO right to a jury trial in the claims-allowance process in bankruptcy. However, Jaresky does reconfirm…
US Banks Warn of Disaster and Brace for Higher Delinquencies Despite Rate Cut Expectations
US Banks Warn of Disaster and Brace for Higher Delinquencies Despite Rate Cut Expectations, reports 7/29/24 Credit & Collection e-newsletter: Some of the largest United States banks are bracing themselves for some significant losses coming out of their portfolio of personal loans and credit cards as indicated by their financial reports covering the second quarter of 2024. JPMorgan Chase, one of the country’s largest banks set aside nearly $1.2 billion from its revenues to raise its loan loss provision to a staggering amount of $3 billion. They are not alone in this initiative as other big financial institutions like Bank…